American Airlines' pilots offer $660m deal

American Airlines' pilots yesterday proposed a $660m (£420m) deal as part of concessions to stave off bankruptcy for the troubled carrier.

The airline, which has lost 90pc of its value since September 11, was locked in last-ditch talks with unions and banks over the weekend. The 13,500-strong pilots' union said its plan would help achieve required cost-savings.

Parent company AMR says it needs to cut structural costs by $4 billion a year and wants unions to accept $1.8 billion in wage cuts. The proposal from the 13,500-strong pilots' union follows concessions by other unions, such as that representing 26,000 flight attendants which offered $340m of savings on Friday.

A deal still needs to be done with the Transport Workers' Union, which represents 16,200 mechanics. If talks fail, American, about $20 billion in debt, could file for bankruptcy as early as this week.